Question

Which of the following securities should sell at a greater price?
a. A 10-year Canada bond with a 9 percent coupon rate versus a 10-year Canada bond with a 10 percent coupon rate
b. A three-month maturity call option with an exercise price of $ 40 versus a three-month call on the same stock with an exercise price of $ 35
c. A put option on a stock selling at $ 50, or a put option on another stock selling at $ 60 (all other relevant features of the stocks and options may be assumed to be identical)
d. A three-month T-bill with a discount yield of 6.1 percent versus a three-month T-bill with a discount yield of 6.2 percent